International Journal of Comparative Management (11 papers in press)
Internationalization Strategies of Emerging Markets Firms
by Rosa Caiazza
Abstract: Starting from existing mergers and acquisitions (M&A) trend and managerial literature we evidence new challenges for internationalization strategies. Our conceptual paper aims to evidence several aspects to discuss more deeply in future papers on M&A process and internationalization strategies. First, we evidence challenges due to cultural diversity in multipolar strategies. Second, we evidence how these challenges require firms to re-evaluate their strategies in a multipolar world. Finally, we propose a new model of performance evaluation of M&A.
Keywords: Internationalization strategies; Emerging markets firms; Mergers and acquisitions; Performance evaluation; Cultural diversity.
Institutional, Stakeholder, and Cultural Influences on Corporate Social Performance: An Institution-Based View
by Nai H. Lamb, Philip T. Roundy
Abstract: Although scholars are beginning to explore the institutional and stakeholder influences on corporate social performance (CSP), these influences have been examined in isolation and as separate forces. Research on CSP also has not considered that institutions and stakeholders are embedded within distinct cultures, which are not homogeneous and can differ on key dimensions. To address these issues, we explore how institutional pressures from organizations external stakeholders can influence CSP and how these influences can, in turn, differ across cultures. Specifically, we theorize about the influence of coercive institutional pressures, stemming from pressures exerted on firms by organizations and institutions that firms depend on for tangible and intangible resources. Drawing from the institution-based view of firm strategy, we argue that in order to acquire tangible and intangible resources, firms often respond to stakeholders coercive pressures by engaging in activities to improve CSP. Thus, coercive institutional forces and CSP are positively related. Furthermore, we posit that the influence of stakeholders on CSP will differ across cultures. We focus on a particularly salient cultural dimension power distance and theorize that high power distance strengthens the coercive effects of government and weakens the effects of unions and interest groups on CSP.
Keywords: Corporate social performance (CSP); corporate social responsibility (CSR); institution-based view; stakeholder perspective; cross-cultural comparison; comparative management.
Global consolidation of industries and business failures: insights from brick-and-mortar and online outlets
by Joseph Amankwah-Amoah
Abstract: Although online platforms are increasingly seen as a linchpin for firms competing in the 21st century, our understanding of competition between the traditional brick-and-mortar and online outlets, and how this can lead to different types of business failures, remains limited. In the light of the disjointed nature of the current streams of research, we propose an integrated framework that classifies the differential effects of online and brick-and-mortar competition. Based on a review of the literature, the study identified four competitive dynamics, i.e. bricks vs. bricks; clicks vs. bricks; clicks vs. clicks and brick-and-click, and explores how they can lead to different kinds of business. It is contended that the failure rate is likely to rise for small firms that adopt a sole brick-and-mortar strategy largely due to the risk of becoming research shops. The study contributes to comparative strategic management literature by shedding light on the evolution of online and offline management strategies and practices across the globe. In this direction, the study provides insights on some aspects both universal and country-specific features in the evolution of online and offline. The analysis highlights the importance of championing successful blending of both online and offline platforms.
Keywords: online shopping; bricks-and-mortar shops; technology; internet; business failure.
The innovation process from an idea to a final product: A review of the literature
by Minisha Gupta
Abstract: Innovation has been previously explored by academic scholars and organizations to identify its determinants, characteristics and has often ended in producing incompatible results. This paper advocates the research on innovation by systematically developing a structure of innovation process. The study has been incorporated by the underlying theories, types, processes, antecedent and contextual factors, and sources of innovation process. The conceptual developments, generation and adoption processes, antecedents, and influences of innovation on organizations have been explained thoroughly in the study. Previous research work has been aligned with either one of two components of innovation process. However, this paper discusses each and every part of innovation process to combine them in a single framework and discusses their contribution in generating diversified outputs. By developing an understanding of innovation as a process, this paper aims to complement existing theories of innovation to further extend and advance theory and research on innovation process and outcome in organizations.
Keywords: Innovation; managerial innovation; innovation process; organizational development; organizational strategy; innovation management.
Outward Foreign Direct Investment from Indian manufacturing firms Does Transaction Cost theory explains Early choices?
by Vinish Kathuria
Abstract: The objective of the paper is to see whether transaction cost theory explains early choices of Indian multinationals, when outward foreign direct investment (OFDI) policy was still not liberal. This is done through three research questions: a) what determines choosing between joint venture (JV) and wholly-owned subsidiary (WOS) for Indian manufacturing firms; b) whether factors are different from the one for the developed country firms; and c) do they differ if investment is made in another developing country vis-
Keywords: Foreign direct investment; Internationalization; Diversification; Joint ventures; Wholly-owned subsidiary; Emerging market multinationals; Transaction cost theory; India.
A typology of post-M&A marketing integration
by Christina Öberg
Abstract: The merger and acquisition (M&A) literature remains scarce on descriptions about marketing integration. The few M&A studies focusing on marketing integration describe a one-type-fits-all integration. This paper develops a typology on marketing integration. The typology departs from the continuum between standardized products and customized services, and the continuum between transactional and relational exchanges with customers. Literature reviews and qualitative case studies functioned as data sources for the typology. The findings denote how the integration varies greatly, both in terms of degree of integration and in what could successfully be integrated based on variations in offerings and customer interactions. The paper contributes to the M&A literature and the previous scarce literature on marketing related to M&As.
Keywords: Integration; Marketing; Merger and acquisition; Typology; Post-acquisitiom integration strategy.
The Structure and Behaviour of Small African Banks: Market Power and Bank Diversification Strategy in Ghana
by Mohammed Amidu, Charles Adjasi
Abstract: This paper analyses the effect of market structure on diversification strategies of the banking industry of Ghana - a growing medium-sized Sub Saharan African country. We draw on a comprehensive panel dataset of 21 Ghanaian banks over a ten-year period. Based on HHI measures of diversification, there is evidence of a gradual shift away from concentration in interest income streams to non-interest income generating activities. The trend in the Lerner index of market power shows that there is very little competition amongst Ghanaian banks. We employ standard panel data econometrics to test if market power influences bank diversification and find that diversification within non-interest income activities increase as banks gain market power.
Keywords: Market power; Bank diversification; Ghana; Sub Saharan Africa; Emerging markets; Banking sector; Institutional development.
Internationalisation and Sustainability as a Field: A Contingent View of Comparative
Management via Bourdieusian Sociology
by Rafael Borim-de-Souza, Natalia Martinez Ambrogi Woitas, Beatriz Lima Zanoni, Jacques Haruo Fukushigue Chiba
Abstract: This paper was developed with the objective of analysing, via the Bourdieusian sociology, the field that discusses the relationship between internationalisation of corporations and sustainability. This bibliometric study was constructed in two phases: the first, quantitative-descriptive; and, the second, qualitative-exploratory. For the quantitative-descriptive analysis of the field it was discovered 113 papers, published in 43 journals, written by 272 researchers spread in 166 educational and research institutions, which are spread across 44 countries. For the qualitative-exploratory analysis of the field the contents of the papers were analysed from the discursive standards about the relationship between internationalisation of corporations and sustainability proposed by Borim-de-Souza et al. (2015), who have approached the internationalisation of corporations from explanatory approaches of the comparative management theory, and the sustainability from explanatory approaches of the sustainable development and of the sustainability itself. It was identified that the field is dominated by a Noncritical Postcolonialist discursive standard.
Keywords: Field; Internationalisation of Corporations; Comparative Management Theory; Sustainability; Sustainable Development; Colonialist; Noncritical Postcolonialist; Critical Postcolonialist; Bourdieusian; Bibliometric.
Location choices at the subnational level perspective: The case of the Volkswagen Group in BRIC countries
by Lu Fu, Mario Henrique Ogasavara, José Milton De Sousa-Filho
Abstract: This study analyses the location choices of the Volkswagen Group (VWG) in BRIC countries built on entry and subsequent investments. Based on the internationalization theories of the Uppsala model and the Eclectic Paradigm, this study performs a qualitative analysis applying a case study approach. We collected data from archival sources including corporate documents and official reports. The results revealed a partial support for the Uppsala model, while the Eclectic paradigm combined with an institution-based view explain VWGs location choices. Most importantly, the findings demonstrate that when examining a firms entry and subsequent investment into international markets, institutional aspects must be explored in depth not only at the country level but especially from a subnational level perspective, since the operation, in fact, occurs in this specific location.
Keywords: Location choice; Automobile Industry; Entry Mode; Subsequent Investment; Internationalisation; Geographic Diversification; Plant Location; Emerging Markets; Brazil; Russia; India; China.
The International Entry Mode of Family-owned Enterprises: A Socio-Emotional Wealth (SEW) Perspective
by Vincenzo Pisano
Abstract: This paper aims to provide a preliminary step in the attempt to consolidate international business and family business research outcomes. The idea is that the two literature streams keep developing separately calling for the development of a consolidation process. Through the adoption of the socio-emotional wealth (SEW) perspective, the paper proposes a conceptual re-interpretation of the results achieved by the main international business theories underlining the key and most influential factors potentially affecting the international entry mode process of family-owned enterprises. It is suggested that family firms tend to perceive a higher risk than non-family firms because of their intrinsic characteristics and connected principles behind decision processes. Specifically, family-owned firms pursue the protection of the SEW and hence, their choices should always be in line with such principle. As a consequence, their ideal entry mode should always guarantee the full protection of the SEW, a specificity that only greenfield investments can pledge.
Keywords: Family-owned business; internationalization; socio-emotional wealth; market entry mode; greenfield investments; family-owned multinational enterprises; global strategy.
Emotional Exhaustion and its consequences: A Comparative Study of Nurses in India and China
by Saif-ud-Din , Vishwanath Baba, Louise Tourigny
Abstract: We explore the impact of emotional exhaustion on job performance, job satisfaction, and depression in two collectivist societies. Specifically, we investigate the role of organizational commitment as a mediator and as a moderator of the relationship between emotional exhaustion and its consequences. Data were collected from 683 nurses in India and 451 nurses in China. Emotional exhaustion exerted significant direct influence on all criterion variables beyond the impact of age and marital status for both samples. Results in general support the mediation hypothesis for both samples. Commitment was also found to moderate the relationship between emotional exhaustion, job satisfaction, and depression among Chinese nurses but not among Indian nurses. The results seem to suggest differential context effects between India and China in the etiology of emotional exhaustion. More broadly, the findings endorse differences within collectivist cultures. Implications of the findings for future research are discussed.
Keywords: Emotional exhaustion; organizational commitment; mediation; moderation; nonwestern collectivist cultures; comparison of India and China.